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Samsung Electronics
Team
Sakshama Ghoslya,
(B12122, 4th Year, EE)
Himanshu Rathore,
(B12075, 4th Year, EE)
History:
Founded in: 1938
Founded by:
Lee Byung-chul (1910-1987, South Korean)
1951: It became the cooperation
1969: Started producing Television, Mobile, Computer etc.
1990: Started expending globally (US, Britain, Germany, China)
Quantitative Goals
…………………………………..
USD 400 billion in sales,
No. 1 in global IT
industry & Global top 5
Qualitative Goals
……………………………………..
Innovative and
respected company, Top
10 world’s best work
places
----------------
Inspire the world,
Create the future
Synopsis:
Semiconductors : DRAM, SDRAM, flash memory,
and hard drives
Digital displays: LCD displays, Plasma displays and
OLED displays
Home Electronics: TVs, DVD players,
home cinema systems, set-top boxes, and projectors
Mobile devices: mobile phones, MP3 players,
digital cameras.
Computing products: monitors, laptops, UMPCs,
CD and DVD drives, laser printers, and faxes machine.
Home appliances: refrigerators, washing machines,
microwaves, vacuum cleaners, and air conditioners.
Competitors:
Apple
LG
Sony
Performance:
SWOT Analysis:
Strengths Weaknesses
• Innovation and design
• Low production costs
• Largest share in mobile phones
• Excellence in engineering and producing
hardware parts
• Lack its own OS and software
• Focus on too many products
• Too low profit margin
Opportunities Threats
 Growing mobile advertising industry
 Growth of tablets market
 Growing demand for quality application
processors
 Growing India’s smartphone market
 Rapid technological change
 Price wars
 Declining margins on hardware production
 Saturated smartphone markets in developed
countries
Structure and Model type:
Centralized Structure
Planning Model, Late stage companies
Board of Directors: (Total members: 9)
Vice chairman and CEO: 1
President and CEO: 2
President and CFO: 1
Independent Directors: 5
Organization Chart:
Porter’s 6 force analysis:
• Threat of new entrants:
The White Goods industry is characterized by high barriers
to entry especially where global companies like Samsung are concerned. Indeed, it
is often very difficult to enter emerging markets because a host of factors have to
be taken into consideration such as setting up the distribution network and the
supply chain. So threat of new entrants is Low for Samsung.
• Threat of substitutes:
This element is indeed high as the markets for white goods
are flooded with many substitutes and given the fact that consumer durables are
often longer term purchases, companies like Samsung have to be careful in
deciding on the appropriate marketing strategy. So threat of substitutes for a
particular product of Samsung is High.
• Power of buyers:
The power of buyers for white goods makers like Samsung is
somewhat of a mixed bag where though the buyers have a multitude of options to
choose from and at the same time have to stick with the product since they cannot
just dump the product, as it is a high value item. Further, the buyers would have to
necessarily approach the companies for after sales service and for spare parts. So
power of buyers is Medium for Samsung.
Porter’s 6 force analysis:
• Power of suppliers:
In many markets in which Samsung operates, there are many
suppliers who are willing to offer their services at a discount. However, this does
not mean that the companies can exert undue force over the suppliers as once the
supply chain is established; it takes a lot to build a new supply chain afresh. So
power of suppliers is Low.
• Intensity of rivalry:
This element is especially significant for Samsung as the other
White Goods multinationals like LG, Nokia, and Motorola, Apple are engaged in
fierce competitive rivalry. Indeed, Samsung cannot take its position in the market
for granted as all these and other domestic white goods players operate in a market
where margins are tight and the competition is intense. So intensity of rivalry is
High in this case.
• Complementors:
Public debates on multi brand companies and Indian
government regulations and incentives are the complementors of Samsung which
complements the effectiveness of the organisation in negative way. So 6th force is
also High.
Future:
Samsung is still in the list of
world’s biggest mobile phone
vendors
Samsung’s share of the global
market slipped to 22.2% from
27.4% last year.
Its earnings could rise thanks to
expanded sales of the S6 and
curved-screen S6 Edge.
Smart Phone Market shared in China
Samsung electronics Organization Management

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Samsung electronics Organization Management

  • 1.
  • 2. Samsung Electronics Team Sakshama Ghoslya, (B12122, 4th Year, EE) Himanshu Rathore, (B12075, 4th Year, EE)
  • 3. History: Founded in: 1938 Founded by: Lee Byung-chul (1910-1987, South Korean) 1951: It became the cooperation 1969: Started producing Television, Mobile, Computer etc. 1990: Started expending globally (US, Britain, Germany, China)
  • 4. Quantitative Goals ………………………………….. USD 400 billion in sales, No. 1 in global IT industry & Global top 5 Qualitative Goals …………………………………….. Innovative and respected company, Top 10 world’s best work places
  • 6. Synopsis: Semiconductors : DRAM, SDRAM, flash memory, and hard drives Digital displays: LCD displays, Plasma displays and OLED displays Home Electronics: TVs, DVD players, home cinema systems, set-top boxes, and projectors Mobile devices: mobile phones, MP3 players, digital cameras. Computing products: monitors, laptops, UMPCs, CD and DVD drives, laser printers, and faxes machine. Home appliances: refrigerators, washing machines, microwaves, vacuum cleaners, and air conditioners.
  • 9.
  • 10. SWOT Analysis: Strengths Weaknesses • Innovation and design • Low production costs • Largest share in mobile phones • Excellence in engineering and producing hardware parts • Lack its own OS and software • Focus on too many products • Too low profit margin Opportunities Threats  Growing mobile advertising industry  Growth of tablets market  Growing demand for quality application processors  Growing India’s smartphone market  Rapid technological change  Price wars  Declining margins on hardware production  Saturated smartphone markets in developed countries
  • 11. Structure and Model type: Centralized Structure Planning Model, Late stage companies Board of Directors: (Total members: 9) Vice chairman and CEO: 1 President and CEO: 2 President and CFO: 1 Independent Directors: 5
  • 13. Porter’s 6 force analysis: • Threat of new entrants: The White Goods industry is characterized by high barriers to entry especially where global companies like Samsung are concerned. Indeed, it is often very difficult to enter emerging markets because a host of factors have to be taken into consideration such as setting up the distribution network and the supply chain. So threat of new entrants is Low for Samsung. • Threat of substitutes: This element is indeed high as the markets for white goods are flooded with many substitutes and given the fact that consumer durables are often longer term purchases, companies like Samsung have to be careful in deciding on the appropriate marketing strategy. So threat of substitutes for a particular product of Samsung is High. • Power of buyers: The power of buyers for white goods makers like Samsung is somewhat of a mixed bag where though the buyers have a multitude of options to choose from and at the same time have to stick with the product since they cannot just dump the product, as it is a high value item. Further, the buyers would have to necessarily approach the companies for after sales service and for spare parts. So power of buyers is Medium for Samsung.
  • 14. Porter’s 6 force analysis: • Power of suppliers: In many markets in which Samsung operates, there are many suppliers who are willing to offer their services at a discount. However, this does not mean that the companies can exert undue force over the suppliers as once the supply chain is established; it takes a lot to build a new supply chain afresh. So power of suppliers is Low. • Intensity of rivalry: This element is especially significant for Samsung as the other White Goods multinationals like LG, Nokia, and Motorola, Apple are engaged in fierce competitive rivalry. Indeed, Samsung cannot take its position in the market for granted as all these and other domestic white goods players operate in a market where margins are tight and the competition is intense. So intensity of rivalry is High in this case. • Complementors: Public debates on multi brand companies and Indian government regulations and incentives are the complementors of Samsung which complements the effectiveness of the organisation in negative way. So 6th force is also High.
  • 15. Future: Samsung is still in the list of world’s biggest mobile phone vendors Samsung’s share of the global market slipped to 22.2% from 27.4% last year. Its earnings could rise thanks to expanded sales of the S6 and curved-screen S6 Edge. Smart Phone Market shared in China